Resources

Getting Started

Options 101
10:43:00 AM EDT |
12/27/2013
Why Is She Trading That?
By
Linda Piazza
|
With all the sophisticated indicators available, why would someone base a trade on something as basic as a moving average? Turns out, such decisions don't have to be based on rocket science.

Options 101
10:59:28 AM EDT |
12/20/2013
When Trades Go Bad Right Away, Part 2
By
Linda Piazza
|
This article picks up where last week's ended, using a hypothetical iron condor trade entered November 20 to discuss a trader's choices when a trade goes wrong right away.

Options 101
3:59:27 PM EDT |
12/13/2013
When Trades Go Bad Right Away
By
Linda Piazza
|
What happens when a trade goes bad right from the start? Do you adjust or do you just close the trade?

Options 101
2:47:03 PM EDT |
11/22/2013
What Would Stop You from Trading?
By
Linda Piazza
|
You love trading options and can't imagine anything stopping you. What would be the factors that would cause you to stop trading?

Options 101
6:28:48 PM EDT |
11/1/2013
Not All Deltas Are Created Equal
By
Linda Piazza
|
When you're using delta to assess price-related risk in a trade, don't forget to factor in the standard deviation of the underlying: comparing an IWM trade to a RUT trade.

Options 101
6:26:24 PM EDT |
10/11/2013
Are You an Introvert or Extrovert?
By
Linda Piazza
|
What does introversion or extroversion have to do with trading options? Perhaps it has more relevance than you would think.

Options 101
2:38:17 PM EDT |
10/4/2013
Basic Ideas about Gamma
By
Linda Piazza
|
If delta details the velocity with which an option's trade's profit-and-loss line will change, gamma details the acceleration with which the velocity changes.

Options 101
1:31:37 PM EDT |
9/27/2013
It Happened Again!
By
Linda Piazza
|
What happens when you need to adjust your options trade and can't trade options because of a problem with OPRA, the exchanges or your brokerage?

Options 101
3:09:41 PM EDT |
9/13/2013
Watch That Theta
By
Linda Piazza
|
You know the theta of your complex options position. However, do you know the theta of the major components of the position? Are they still working as you expected?

Options 101
5:43:04 PM EDT |
8/16/2013
Closing a Trade before an Important Economic Release
By
Linda Piazza
|
Closing a trade before an important economic release is sometimes a good idea if the release might produce wild market movement. But why not wait until the last minute and allow as much time decay as possible?

Options 101
3:02:35 PM EDT |
8/2/2013
Always a Tradeoff
By
Linda Piazza
|
What is the best options trade? No such trade exists. Each trade requires a tradeoff.

Options 101
1:36:08 PM EDT |
7/19/2013
The End of the Trading Day
By
Linda Piazza
|
If you've got an open position at the end of the trading day, what should you do to prepare for the next trading day?

Options 101
12:32:44 PM EDT |
7/12/2013
Downtime Isn't Wasted Time
By
Linda Piazza
|
When market conditions or other complications keep you from trading for a few days or weeks, you can still advance your trading skills.

Options 101
3:35:50 PM EDT |
7/5/2013
Looking Beyond Expiration Breakevens
By
Linda Piazza
|
If you intend to close a monthly trade the week before expiration week, is the expiration breakeven the best decider among strategies?

Options 101
2:39:05 PM EDT |
6/28/2013
Mystery Graphs
By
Linda Piazza
|
Can you look at an expiration graph and tell what strategy you're seeing and where long and short strikes are located?

Options 101
4:17:52 PM EDT |
5/17/2013
What Happens on a Day Like April 25
By
Linda Piazza
|
April 25 proved a frustrating, difficult, and, in some cases, expensive day for some options traders. What could be done if there is a repeat?

Options 101
12:34:46 PM EDT |
5/10/2013
What Exactly Is Armageddon Insurance?
By
Linda Piazza
|
"Exactly" is the wrong word. Armageddon insurance will be different for different traders or investors, each with different goals.

Options 101
2:44:04 PM EDT |
4/12/2013
What Kind of Orders Do You Place?
By
Linda Piazza
|
Does your online broker offer enough flexibility in placing orders? What kind of capabilities might be important in choosing your next online broker?

Options 101
3:35:21 PM EDT |
4/5/2013
What's on Your Calendar?
By
Linda Piazza
|
Why were some butterfly and iron condor traders adding calendars to their trades in March and April?

Options 101
8:17:57 AM EDT |
3/29/2013
What Trade Should I Avoid?
By
Linda Piazza
|
When choosing trades, traders should avoid those that create discomfort or aren't right for market conditions.

Options 101
8:07:08 AM EDT |
3/22/2013
Paying for Adjustments
By
Linda Piazza
|
Your trade begins with a certain margin or buying-power effect. How much more do you set aside to make the adjustments you plan to make?

Options 101
9:44:42 AM EDT |
3/8/2013
The Weekend Effect
By
Linda Piazza
|
It's Friday afternoon. You're looking forward to Monday's open when you'll see three days of options decay reflected in your complex options position. Not so fast.

Options 101
4:43:17 PM EDT |
3/1/2013
What Good Is Back Testing?
By
Linda Piazza
|
Back testing can't replicate all live trading conditions, such as days when low volume prevents fills or fast-moving markets makes adjustments dicey. What good is back testing then?

Options 101
1:06:18 PM EDT |
2/22/2013
Time to Wrap It Up
By
Linda Piazza
|
It's time to wrap up a series of articles discussing the decisions traders must make as they move from pure directional trades to more complex trades.

Options 101
6:34:54 PM EDT |
2/15/2013
The Basics, More Ideas
By
Linda Piazza
|
We've been comparing and contrasting butterflies and iron condors. Last week, we looked at pros and cons for various iron condor adjustments, and now it's time to do the same for butterflies.

Options 101
5:29:20 PM EDT |
2/8/2013
Basics Again, Part Three
By
Linda Piazza
|
What are the pros and cons of various iron condor adjustments, as compared to those available for the butterfly?

Options 101
12:45:15 PM EDT |
2/1/2013
Compare and Contrast
By
Linda Piazza
|
The last two Options 101 articles have discussed the basic setups for two often-employed complex options trades, the butterfly and the iron condor. This one compares and constrasts the two basic setups.

Options 101
11:18:50 AM EDT |
1/25/2013
Back to the Basics, Part 2
By
Linda Piazza
|
If we are beginning traders, what are the basic decisions we make when evaluating the pros and cons of two strategies? If we are experienced, are our decisions or market conditions the same as they were when we initially made those choices?

Options 101
10:19:03 AM EDT |
1/18/2013
Back to the Beginning
By
Linda Piazza
|
Traders confront a multitude of decisions when they decide to trade complex strategies such as butterflies or iron condors. Let's go back to the basics and talk about some of those decisions.